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Options Traders React After Apollo Ups Tech Data Bid

Apollo Global Management and Berkshire Hathaway are bidding on Tech Data

Managing Editor
Nov 29, 2019 at 11:20 AM
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Stocks are lower today as Black Friday mania sweeps Wall Street. But among the names bucking the broad market trend and making notable moves higher are Israeli-based industrial company T.A.T. Technologies Ltd. (NASDAQ:TATT) and technology distributor Tech Data Corp (NASDAQ:TECD). Here's a quick look at what's moving the shares of TATT and TECD.

TATT Eyes Best Day in Months After Blowout Earnings

The shares of T.A.T. Technologies are up 6% to trade at $5.78, after the hardware concern reported third-quarter earnings and revenue that topped analyst expectations. TATT is cruising toward its best single-session gain since May, and is on track to topple its 160-day moving average for the first time on a closing basis since January 2019. Despite today's rally though, the equity is still down 19% year-to-date.

TECD Options Pits Come to Life Amid Bid War

Tech Data stock is up 12.2% to trade at $144.73, after Apollo Global Management upped its buyout offer to $145 per share from $130 per share. This comes after Tech Data disclosed it had received a superior offer, and separate reports that Warren Buffett's Berkshire Hathaway (BRK.A) made a competing offer of $140 per share. TECD earlier nabbed a record high of $145.08, and is now up 77% year-to-date. Amidst this climb, the shares' 30-day moving average has neatly contained pullbacks. 

Tech Data's normally quiet options pits have come to life. At last check, nearly 2,000 options have changed hands, 22 times the average intraday amount and volume in the 100th percentile of its annual range. Leading the charge today is the December 140 put and December 150 call, where both new positions are being opened and sell-to-open activity has been detected.

 
 

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